Digital payments rely on communication between the parties involved in the payment – systems must therefore communicate using the same ‘language’. All around the world, central banks, banks and financial infrastructures use the SWIFT network and its format and standards to make payments. SWIFT’s previous standard has limitations, including the amount of information that can be sent with a payment. Consequently, in autumn 2020, SWIFT presented a strategy and timetable for migration to the new ISO 20022 format.
In March 2023, the Eurosystem will migrate to ISO 20022 for payments. Globally, the transition is expected to last until 2025, which is SWIFT’s end date for its old format and the old standard for cross-border payments. RIX-INST, which went live in May 2022, is based on ISO 20022.
The international use of ISO 20022 opens the door to faster and more efficient processing of payments between countries and currencies. The new format, which includes more information, can also help to increase the transparency and traceability of cross-border payments.